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4w ago

Germany’s CDU, CSU, and SPD Finalize Coalition Agreement, Unveiling New Government Framework

The coalition pact, presented today, outlines ministerial portfolios, a new Digital Ministry, and ambitious reforms, pending internal party approvals and Chancellor election in May.

Merz und Klingbeil
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Overview

  • The coalition agreement allocates key ministerial posts: SPD secures Finance and Defense, CDU takes the Foreign Ministry and Chancellor’s Office, and CSU leads the Interior Ministry among others.
  • A Digital Ministry will be established to enhance Germany’s digital infrastructure, a longstanding demand from experts and stakeholders.
  • Economic measures include the creation of a 'Deutschlandfonds' to stimulate investment, tax incentives for businesses, and a reduction in the corporate tax rate beginning in 2028.
  • Internal party votes in the SPD, CDU, and CSU are required to ratify the agreement, with the Chancellor election expected on May 7, 2025.
  • Criticism has emerged over the feasibility of the coalition's promises, with concerns about housing policies and the potential for unmet public expectations.